The relationship between allocation of equal employee benefits and employee job satisfaction and performance at the Kenya pipeline company, Kenya

Summary

The research paper by Mochama (2013) aimed to examine the effects of awarding equal employee benefits on employees' job satisfaction and job performance at the Kenya Pipeline Company (KPC), Eldoret Branch, Kenya. The study utilized a mixed-methods approach, combining an interpretive case study methodology with a descriptive survey research design to gather in-depth information. The target population comprised 180 employees at KPC's Eldoret branch. A stratified random sampling technique was employed to select 49 employees, complemented by purposive sampling for 6 senior management staff. Data collection involved multiple instruments, including questionnaires, document analysis of company journals and strategic plans, and interview schedules. Both descriptive and inferential statistics were used for data analysis. The findings indicated a positive correlation between equal employee benefits and the level of job satisfaction among employees. Specifically, the study reported a weak positive correlation between employee benefits and job satisfaction (r = 0.066, p=0.05). Furthermore, there was a statistically significant correlation between equal employee benefits and increased efficiency (α = 0.036, p=0.05) and profitability (α= 0.000). The research also identified weak positive correlations between employee benefits and employee morale (r = 0.329, p=0.05), retention (r = 0.375, p=0.05), commitment (r = 0.07, p=0.05), and their sense of ownership (r = 0.329, p=0.05). However, other findings within the study stated no significant relationship between equal employee benefits and corporate image, employee retention, cost reduction, and staff morale. A majority of employees (75.5%) expressed high satisfaction with the benefits offered by the company, a sentiment largely echoed by managers (83.3%). Based on these findings, the study recommended that KPC harmonize its benefits package to mitigate the effects of inflation and employee attrition. It also suggested reviewing the benefits award structure to enhance its competitiveness, equity, and transparency, which could lead to increased employee motivation, morale, and ultimately, higher performance. The company currently utilizes a Collective Bargaining Agreement (CBA) and company policy for awarding benefits, which include loans, pension schemes, various insurance policies, paid time off, and counselling services.